Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $328,500 per year, consisting of $0.2 per ton variable cost and $278,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 58% of the Transport Services Departments capacity and the Southern Plant requires 42%. During the year, the Transport Services Department actually hauled 130,000 tons of ore to the Northern Plant and 56,300 tons to the Southern Plant. The Transport Services Department incurred $366,000 in cost during the year, of which $53,500 was variable cost and $312,500 was fixed cost. Required:

1. How much of the Transport Services Departments variable costs should be charged to each plant?

2. How much of the $312,500 in fixed cost should be charged to each plant?

3. How much, if any, of the Transport Services Departments actual total cost of $366,000 should be treated as a spending variance and not charged to the plants?

How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $312,500 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $366,000 should be treated spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. How much of the Transport Services Department's variable costs should be charged to each plant